HAFA $10,000 Relocation Incentive

The HAFA guidelines for short sales are adjusting as of February 1st 2015. The first major change that will benefit homeowners are that may not be eligible up to $10,000 in relocation incentive if they qualify for HAFA. Various factors determine a borrowers eligibility for HAFA such as if the property is occupied, the original loan balance and origination date, and if the investor participates in HAFA. It’s also important for a borrower to know that If a tenant is occupying the property they may be eligible for the relocation incentive.

The 2nd guideline is that they are not allowing up to $12,000 to subordinate mortgage lien holders. This coupled with a boosted relocation incentive will reduce the NET proceeds going to the 1st mortgage. This will likely mean buyers will have to come in with higher offers or you will see a reduction in relocation incentive to boost the proceeds to the 1st mortgage  on particular transactions. With these new guidelines transactions may have to be structured differently in order to satisfy all parties.

It’s crucial to check investor guidelines and account terms to determine potential borrower eligible for HAFA as soon as possible. For assistance or questions regarding anything related to HAFA or any type of short sale please fill out the form below.

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